FIRST DIVISION

[G.R. No. 192601. June 3, 2013.]

PHILIPPINE JOURNALISTS, INC. , petitioner, vs . JOURNAL

EMPLOYEES UNION (JEU), FOR ITS UNION MEMBER, MICHAEL
ALFANTE , respondents.

DECISION

BERSAMIN , J : p

The coverage of the term legal dependent as used in a stipulation in a collective

bargaining agreement (CBA) granting funeral or bereavement bene t to a regular
employee for the death of a legal dependent, if the CBA is silent about it, is to be construed
as similar to the meaning that contemporaneous social legislations have set. This is
because the terms of such social legislations are deemed incorporated in or adopted by
the CBA.
The decision of the Court of Appeals (CA) under review summarizes the factual and
procedural antecedents, as follows:
Complainant Judith Pulido alleged that she was hired by respondent as
proofreader on 10 January 1991; that she was receiving a monthly basic salary of
P15,493.66 plus P155.00 longevity pay plus other bene ts provided by law and
their Collective Bargaining Agreement; that on 21 February 2003, as union
president, she sent two letters to President Gloria Arroyo, regarding their complaint
of mismanagement being committed by PIJ executive; that sometime in May
2003, the union was furnished with a letter by Secretary Silvestre Afable, Jr. head
of Presidential Management Staff (PMS), endorsing their letter-complaint to
Ombudsman Simeon V. Marcelo; that respondents took offense and started
harassments to complainant union president; that on 30 May 2003, complainant
received a letter from respondent Fundador Soriano, International Edition
managing editor, regarding complainant's attendance record; that complainant
submitted her reply to said memo on 02 June 2003; that on 06 June 2003,
complainant received a memorandum of reprimand; that on 04 July 2003,
complainant received another memo from Mr. Soriano, for not wearing her
company ID, which she replied the next day 05 July 2003; that on 04 August 2003,
complainant again received a memo regarding complainant's tardiness; that on
05 August 2003, complainant received another memorandum asking her to
explain why she should not be accused of fraud, which she replied to on 07
August 2003; and that on the same day between 3:00 to 4:00 P.M., Mr. Ernesto
"Estong" San Agustin, a staff of HRD handed her termination paper.

Complainant added that in her thirteen (13) years with the company and
after so many changes in its management and executives, she had never done
anything that will cause them to issue a memorandum against her or her work
attitude, more so, reasons to terminate her services; that she got dismissed
because she was the Union President who was very active in defending and
pursuing the rights of her union members, and in ghting against the abuses of
respondent Corporate O cers; and that she got the ire of respondents when the
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 employees led a complaint against the Corporate O cers before Malacañang
and which was later indorsed to the Office of the Ombudsman.
The second complainant Michael L. Alfante alleged that he started to work
with respondents as computer technician at Management Information System
under manager Neri Torrecampo on 16 May 2000; that on 15 July 2001, he was
regularized receiving a monthly salary of P9,070.00 plus other monetary bene ts;
that sometime in 2001, Rico Pagkalinawan replaced Torrecampo, which was
opposed by complainant and three other co-employees; that Pagkalinawan took
offense of their objection; that on 22 October 2002, complainant Alfante received
a memorandum from Pagkalinawan regarding his excessive tardiness; that on 10
June 2003, complainant Alfante received a memorandum from Executive Vice-
President Arnold Banares, requiring him to explain his side on the evaluation of
his performance submitted by manager Pagkalinawan; that one week after
complainant submitted his explanation, he was handed his notice of dismissal on
the ground of "poor performance"; and that complainant was dismissed effective
28 July 2003.

Complainant Alfante submitted that he was dismissed without just cause.

Respondents, in their position paper, averred that complainants Pulido and
Alfante were dismissed for cause and with due process.

With regard to complainant Pulido, respondents averred that in a

memorandum dated 30 May 2003, directed complainant to explain her habitual
tardiness, at least 75 times from January to May of 2003. In a memorandum,
dated 06 June 2003, directed complainant to observe the 3 p.m. rule to avoid
grammatical lapses, use of stale stories just to beat the 10:00 p.m. deadline. In
the same memorandum complainant was given the warning that any repeated
violation of the rules shall be dealt with more severely. Once again, in a
memorandum, dated 04 August 2003, complainant Pulido was required to explain
why no disciplinary action should be taken against her for habitual tardiness — 18
times out of the 23 reporting days during the period from 27 June-27 July 2003
and on 05 August 2003, complainant was directed to explain in writing why
complainant should not be administratively sanctioned for committing fraud or
attempting to commit fraud against respondents. Respondents found
complainant's explanations unsatisfactory. On 07 August 2003, respondents
dismissed complainant Pulido for habitual tardiness, gross insubordination, utter
disrespect for superiors, and committing fraud or attempting to commit fraud
which led to the respondents' loss of confidence upon complainant Pulido.

In case of complainant Alfante, respondents averred in defense that

complainant was dismissed for "poor performance" after an evaluation by his
superior, and after being forewarned that complainant may be removed if there
was no showing of improvement in his skills and knowledge on current
technology.

In both instances, respondents maintained that they did not commit any
act of unfair labor practices; that they did not commit acts tantamount to
interfering, restraining, or coercing employees in the exercise of their right to self-
organization.

Respondents deny liabilities as far as complainants' monetary claims are

concerned. Concerning violations of the provision on wage distortion under Wage
Order No. 9, respondents stressed that complainants were not affected since their
salary is way over the minimum wage.
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 With respect to the alleged non-adjustment of longevity pay and burial aid,
respondent PJI pointed out that it complies with the provisions of the CBA and
that both complainants have not claimed for the burial aid.

Respondents put forward the information that the alleged non-payment of

rest days — every Monday for the past three (3) years is a matter that is still at
issue in NLRC Case No. 02-0402973-93, which case is still pending before this
Commission.

Respondents asserted that the respondents Arturo Dela Cruz, Bobby Capco,
Arnold Banares, Ruby Ruiz-Bruno and Fundador Soriano should not be held liable
on account of complainants' dismissal as they merely acted as agents of
respondent PJI. 1

Upon the foregoing backdrop, Labor Arbiter Corazon C. Borbolla rendered her
decision on March 29, 2006, disposing thusly:
WHEREFORE, foregoing premises considered, judgment is hereby rendered,
nding complainant Judith Pulido to have been illegally dismissed. As such, she
is entitled to reinstatement and backwages from 07 August 2003 up to her actual
or payroll reinstatement. To date, complainant's backwages is P294,379.54.

Respondent Philippine Journalist, Inc. is hereby ordered to pay

complainant Judith Pulido her backwages from 07 August 2003 up to her actual
or payroll reinstatement and to reinstate her to her former position without loss of
seniority right.
Respondent is further ordered to submit a report to this O ce on
complainant's reinstatement ten (10) days from receipt of this decision.

The charge of illegal dismissal by Michael Alfante is hereby dismissed for

lack of merit.

The charge of unfair labor practice is dismissed for lack of basis.

SO ORDERED. 2

Complainant Michael Alfante (Alfante), joined by his labor organization, Journal

Employees Union (JEU), led a partial appeal in the National Labor Relations Commission
(NLRC). 3
In the meantime, on May 10, 2006, petitioner and Judith Pulido (Pulido), the other
complainant, jointly manifested to the NLRC that the decision of March 29, 2006 had been
fully satis ed as to Pulido under the following terms, namely: (a) she would be reinstated
to her former position as editorial staffmember, or an equivalent position, without loss of
seniority rights, effective May 15, 2006; (b) she would go on maternity leave, and report to
work after giving birth; (c) she would be entitled to backwages of P130,000.00; and (d)
she would execute the quitclaim and release on May 11, 2006 in favor of petitioner. 4 This
left Alfante as the remaining complainant.
On January 31, 2007, the NLRC rendered its decision dismissing the partial appeal
for lack of merit. 5
JEU and Alfante moved for the reconsideration of the decision, but the NLRC denied
their motion on April 24, 2007. 6
Thereafter, JEU and Alfante assailed the decision of the NLRC before the CA on
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 certiorari (C.A.-G.R. SP No. 99407).
On February 5, 2010, the CA promulgated its decision in C.A.-G.R. SP No. 99407, 7
decreeing:
WHEREFORE, premises considered, the instant petition is PARTLY
GRANTED.
The twin Resolutions dated January 31, 2007 and April 24, 2007,
respectively, of the Third Division of the National Labor Relations Commission
(NLRC), in NLRC NCR CA No. 048785-06 (NLRC NCR Case No. 00-10-11413-04),
are MODIFIED insofar as the funeral or bereavement aid is concerned, which is
hereby GRANTED, but only after submission of conclusive proofs that the
deceased is a parent, either father or mother, of the employees concerned, as well
as the death certi cate to establish the fact of death of the deceased legal
dependent.

The rest of the ndings of fact and law in the assailed Resolutions are
hereby AFFIRMED.

SO ORDERED.

Both parties moved for reconsideration, but the CA denied their respective motions
for reconsideration on June 2, 2010. 8
JEU and Alfante appealed to the Court (G.R. No. 192478) to challenge the CA's
dispositions regarding the legality of: (a) Alfante's dismissal; (b) the non-compliance with
Minimum Wage Order No. 9; and (c) the non-payment of the rest day. 9
On August 18, 2010, the Court denied due course to the petition in G.R. No. 192478
for failure of petitioners to su ciently show that the CA had committed any reversible
error to warrant the Court's exercise of its discretionary appellate jurisdiction. 1 0
The Court denied with nality JEU and Alfante's ensuing motion for reconsideration
through the resolution of December 8, 2010. 1 1 The entry of judgment in G.R. No. 192478
issued in due course on February 1, 2011. 1 2
On its part, petitioner likewise appealed (G.R. No. 192601), seeking the review of the
CA's disposition in the decision of February 5, 2010 on the granting of the funeral and
bereavement aid stipulated in the CBA.
In its petition for review, petitioner maintained that under Section 4, Article XIII of the
CBA, funeral and bereavement aid should be granted upon the death of a legal dependent
of a regular employee; that consistent with the de nition provided by the Social Security
System (SSS), the term legal dependent referred to the spouse and children of a married
regular employee, and to the parents and siblings, 18 years old and below, of a single
regular employee; 1 3 that the CBA considered the term dependents to have the same
meaning as beneficiaries, as provided in Section 5, Article XIII of the CBA on the payment
of death bene ts; 1 4 that its earlier granting of claims for funeral and bereavement aid
without regard to the foregoing de nition of the legal dependents of married or single
regular employees did not ripen into a company policy whose unilateral withdrawal would
constitute a violation of Article 100 of the Labor Code, 1 5 the law disallowing the non-
diminution of bene ts; 1 6 that it had approved only four claims from 1999 to 2003 based
on its mistaken interpretation of the term legal dependents, but later corrected the same in
2000; 1 7 that the grant of funeral and bereavement aid for the death of an employee's legal
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 dependent, regardless of the employee's civil status, did not occur over a long period of
time, was not consistent and deliberate, and was partly due to its mistake in appreciating a
doubtful question of law; and that its denial of subsequent claims did not amount to a
violation of the law against the non-diminution of benefits. 1 8
In their comment, 1 9 JEU and Alfante countered that the CBA was a bilateral
contractual agreement that could not be unilaterally changed by any party during its
lifetime; and that the grant of burial bene ts had already become a company practice
favorable to the employees, and could not anymore be reduced, diminished, discontinued
or eliminated by petitioner.
Issue
In view of the entry of judgment issued in G.R. No. 192478, JEU and Alfante's
submissions on the illegality of his dismissal, the non-payment of his rest days, and the
violation of Minimum Wage Order No. 9 shall no longer be considered and passed upon.
The sole remaining issue is whether or not petitioner's denial of respondents' claims
for funeral and bereavement aid granted under Section 4, Article XIII of their CBA
constituted a diminution of benefits in violation of Article 100 of the Labor Code.
Ruling
The petition for review lacks merit.
The nature and force of a CBA are delineated in Honda Phils., Inc. v. Samahan ng
Malayang Manggagawa sa Honda, 2 0 thuswise:
A collective bargaining agreement (or CBA) refers to the negotiated
contract between a legitimate labor organization and the employer concerning
wages, hours of work and all other terms and conditions of employment in a
bargaining unit. As in all contracts, the parties in a CBA may establish such
stipulations, clauses, terms and conditions as they may deem convenient
provided these are not contrary to law, morals, good customs, public order or
public policy. Thus, where the CBA is clear and unambiguous, it becomes the law
between the parties and compliance therewith is mandated by the express policy
of the law.

Accordingly, the stipulations, clauses, terms and conditions of the CBA, being the
law between the parties, must be complied with by them. 2 1 The literal meaning of the
stipulations of the CBA, as with every other contract, control if they are clear and leave no
doubt upon the intention of the contracting parties. 2 2
Here, a conflict has arisen regarding the interpretation of the term legal dependent in
connection with the grant of funeral and bereavement aid to a regular employee under
Section 4, Article XIII of the CBA, 2 3 which stipulates as follows:
SECTION 4.Funeral/Bereavement Aid. — The COMPANY agrees to grant a
funeral/bereavement aid in the following instances:
a. Death of a regular employee in line of duty — P50,000

b. Death of a regular employee not in line of duty — P40,000

c.Death of legal dependent of a regular employee — P15,000 .
(Emphasis supplied)
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 Petitioner insists that notwithstanding the silence of the CBA, the term legal
dependent should follow the de nition of it under Republic Act (R.A.) No. 8282 (Social
Security Law), 2 4 so that in the case of a married regular employee, his or her legal
dependents include only his or her spouse and children, and in the case of a single regular
employee, his or her legal dependents include only his or her parents and siblings, 18 years
old and below; and that the term dependents has the same meaning as bene ciaries as
used in Section 5, Article XIII of the CBA.
We cannot agree with petitioner's insistence.
Social legislations contemporaneous with the execution of the CBA have given a
meaning to the term legal dependent. First of all, Section 8 (e) of the Social Security Law
provides that a dependent shall be the following, namely: (a) the legal spouse entitled by
law to receive support from the member; (b) the legitimate, legitimated, or legally adopted,
and illegitimate child who is unmarried, not gainfully employed and has not reached 21 of
age, or, if over 21 years of age, is congenitally or while still a minor has been permanently
incapacitated and incapable of self-support, physically or mentally; and (c) the parent who
is receiving regular support from the member. Secondly, Section 4 (f) of R.A. No. 7875, as
amended by R.A. No. 9241, 2 5 enumerates who are the legal dependents, to wit: (a) the
legitimate spouse who is not a member; (b) the unmarried and unemployed legitimate,
legitimated, illegitimate, acknowledged children as appearing in the birth certi cate; legally
adopted or step-children below 21 years of age; (c) children who are 21 years old and
order but suffering from congenital disability, either physical or mental, or any disability
acquired that renders them totally dependent on the member of our support; and (d) the
parents who are 60 years old or older whose monthly income is below an amount to be
determined by the Philippine Health Insurance Corporation in accordance with the guiding
principles set forth in Article I of R.A. No. 7875. And, thirdly, Section 2 (f) of Presidential
Decree No. 1146, as amended by R.A. No. 8291, 2 6 states that dependents shall include:
(a) the legitimate spouse dependent for support upon the member or pensioner; (b) the
legitimate, legitimated, legally adopted child, including the illegitimate child, who is
unmarried, not gainfully employed, not over the age of majority, or is over the age of
majority but incapacitated and incapable of self-support due to a mental or physical defect
acquired prior to age of majority; and (c) the parents dependent upon the member for
support.
It is clear from these statutory de nitions of dependent that the civil status of the
employee as either married or single is not the controlling consideration in order that a
person may qualify as the employee's legal dependent. What is rather decidedly controlling
is the fact that the spouse, child, or parent is actually dependent for support upon the
employee. Indeed, the Court has adopted this understanding of the term dependent in
Social Security System v. De Los Santos, 2 7 viz.:
Social Security System v. Aguas is instructive in determining the extent of
the required "dependency" under the SS Law. In Aguas, the Court ruled that
although a husband and wife are obliged to support each other, whether one is
actually dependent for support upon the other cannot be presumed from the fact
of marriage alone.
Further, Aguas pointed out that a wife who left her family until her husband
died and lived with other men, was not dependent upon her husband for support,
financial or otherwise, during the entire period.
Said the Court:
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 In a parallel case involving a claim for bene ts under the GSIS law,
the Court de ned a dependent as "one who derives his or her main support
from another. Meaning, relying on, or subject to, someone else for support;
not able to exist or sustain oneself, or to perform anything without the will,
power, or aid of someone else." It should be noted that the GSIS law
likewise de nes a dependent spouse as "the legitimate spouse dependent
for support upon the member or pensioner." In that case, the Court found it
obvious that a wife who abandoned the family for more than 17 years until
her husband died, and lived with other men, was not dependent on her
husband for support, nancial or otherwise, during that entire period.
Hence, the Court denied her claim for death benefits.
The obvious conclusion then is that a wife who is already separated
de facto from her husband cannot be said to be "dependent for support"
upon the husband, absent any showing to the contrary. Conversely, if it is
proved that the husband and wife were still living together at the time of
his death, it would be safe to presume that she was dependent on the
husband for support, unless it is shown that she is capable of providing for
herself.

Considering that existing laws always form part of any contract, and are deemed
incorporated in each and every contract, 2 8 the de nition of legal dependents under the
aforecited social legislations applies herein in the absence of a contrary or different
de nition mutually intended and adopted by the parties in the CBA. Accordingly, the
concurrence of a legitimate spouse does not disqualify a child or a parent of the employee
from being a legal dependent provided substantial evidence is adduced to prove the actual
dependency of the child or parent on the support of the employee.
In this regard, the differentiation among the legal dependents is signi cant only in
the event the CBA has prescribed a hierarchy among them for the granting of a bene t;
hence, the use of the terms primary bene ciaries and secondary bene ciaries for that
purpose. But considering that Section 4, Article XIII of the CBA has not included that
differentiation, petitioner had no basis to deny the claim for funeral and bereavement aid of
Alfante for the death of his parent whose death and fact of legal dependency on him could
be substantially proved.
Pursuant to Article 100 of the Labor Code, petitioner as the employer could not
reduce, diminish, discontinue or eliminate any bene t and supplement being enjoyed by or
granted to its employees. This prohibition against the diminution of bene ts is founded on
the constitutional mandate to protect the rights of workers and to promote their welfare
and to afford labor full protection. 2 9 The application of the prohibition against the
diminution of bene ts presupposes that a company practice, policy or tradition favorable
to the employees has been clearly established; and that the payments made by the
employer pursuant to the practice, policy, or tradition have ripened into bene ts enjoyed by
them. 3 0 To be considered as a practice, policy or tradition, however, the giving of the
bene ts should have been done over a long period of time, and must be shown to have
been consistent and deliberate. 3 1 It is relevant to mention that we have not yet settled on
the speci c minimum number of years as the length of time su cient to ripen the practice,
policy or tradition into a benefit that the employer cannot unilaterally withdraw. 3 2
The argument of petitioner that the grant of the funeral and bereavement bene t
was not voluntary but resulted from its mistaken interpretation as to who was considered
a legal dependent of a regular employee deserves scant consideration. To be sure, no
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 doubtful or di cult question of law was involved inasmuch as the several cogent statutes
existing at the time the CBA was entered into already de ned who were quali ed as the
legal dependents of another. Moreover, the voluntariness of the grant of the bene t
became even manifest from petitioner's admission that, despite the memorandum it
issued in 2000 3 3 in order to "correct" the interpretation of the term legal dependent, it still
approved in 2003 the claims for funeral and bereavement aid of two employees, namely:
(a) Cecille Bulacan, for the death of her father; and (b) Charito Cartel, for the death of her
mother, based on its supposedly mistaken interpretation. 3 4
It is further worthy to note that petitioner granted claims for funeral and
bereavement aid as early as 1999, then issued a memorandum in 2000 to correct its
erroneous interpretation of legal dependent under Section 4, Article XIII of the CBA. This
notwithstanding, the 2001-2004 CBA 3 5 still contained the same provision granting funeral
or bereavement aid in case of the death of a legal dependent of a regular employee
without differentiating the legal dependents according to the employee's civil status as
married or single. The continuity in the grant of the funeral and bereavement aid to regular
employees for the death of their legal dependents has undoubtedly ripened into a
company policy. With that, the denial of Alfante's quali ed claim for such bene t pursuant
to Section 4, Article XIII of the CBA violated the law prohibiting the diminution of benefits.
WHEREFORE , the Court AFFIRMS the decision promulgated on February 5, 2010;
and ORDERS petitioner to pay the costs of suit.
SO ORDERED .
Sereno, C.J., Leonardo-de Castro, Villarama, Jr. and Reyes, JJ., concur.

Footnotes

1.Rollo, pp. 243-248.

2.Id. at 252.
3.Id. at 253-276.
4.Id. at 292-294.
5.Id. at 295-301.

6.Id. at 321-322.
7.Id. at 54-65; penned by Associate Justice Franchito N. Diamante, with the concurrence of
Associate Justice Mario L. Guariña III (retired) and Associate Justice Sesinando E. Villon.
8.Id. at 66-68.
9.Rollo, (G.R. No. 192478), p. 13.
10.Id. at 390.
11.Id. at 405.

12.Id. at 406.
13.Rollo, p. 41.
14.Id. at 41-42.
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 15.Article 100. Prohibition against elimination or diminution of benefits. — Nothing in this Book
shall be construed to eliminate or in any way diminish supplements, or other employee
benefits being enjoyed at the time of promulgation of this Code.

16.Rollo, p. 43.
17.Id. at 43-44.
18.Id. at 45.
19.Id. at 473-490.
20.G.R. No. 145561, June 15, 2005, 460 SCRA 186, 190-191.

21.TSPIC Corporation v. TSPIC Employees Union (FFW), G.R. No. 163419, February 13, 2008,
545 SCRA 215, citing Centro Escolar University Faculty and Allied Workers Union-
Independent v. Court of Appeals, G.R. No. 165486, May 31, 2006, 490 SCRA 61, 72.
22.Article 1370, Civil Code.

23.Rollo, p. 134.
24.An Act Further Strengthening the Social Security System Thereby Amending for this Purpose
Republic Act No. 1161, As Amended, Otherwise Known as the Social Security Law.
25.An Act Instituting a National Health Insurance Program for All Filipinos and Establishing the
Philippine Health Insurance Corporation for the Purpose.
26.An Act Amending Presidential Decree No. 1146, as amended, Expanding and Increasing the
Coverage and Benefits of the Government Service Insurance System, Instituting Reforms
Therein and for Other Purposes.
27.G.R. No. 164790, August 29, 2008, 563 SCRA 693, 703-704.

28.Sulo sa Nayon, Inc. v. Nayong Pilipino Foundation, G.R. No. 170923, January 20, 2009, 576
SCRA 655, 666.
29.Eastern Telecommunications Philippines, Inc. v. Eastern Telecoms Employees Union, G.R.
No. 185665, February 8, 2012, 665 SCRA 516, 533.
30.Boncodin v. National Power Corporation Employees Consolidated Union (NECU), G.R. No.
162716, September 27, 2006, 503 SCRA 611, 628.
31.Metropolitan Bank and Trust Company v. National Labor Relations Commission, G.R. No.
152928, June 18, 2009, 589 SCRA 376, 384.
32.Sevilla Trading Company v. Semana, G.R. No. 152456, April 28, 2004, 428 SCRA 239, 249.
33.Rollo, p. 41.

34.Id. at 40.
35.Id. at 121-140.

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